Hong Kong Declares Unlicensed Stablecoin Promotions a Crime
Main Idea
Hong Kong will criminalize unlicensed stablecoin promotions starting August 1, 2025, as part of its new Stablecoins Ordinance, aiming to curb fraud and ensure compliance with strict regulatory standards.
Key Points
1. Hong Kong's Stablecoins Ordinance takes effect on August 1, 2025, making unlicensed stablecoin promotions a criminal offense.
2. HKMA CEO Eddie Yue warned the public to remain cautious amid market excitement and potential fraud risks in stablecoins.
3. Over 40 firms, including Ant Group and JD.com, have expressed interest in applying for stablecoin licenses, but strict backing, licensing, and custody rules may disqualify many.
4. The HKMA is finalizing supervisory and anti-money laundering guidelines, expected to be published by July 2025.
5. Global regulators, including the Bank for International Settlements, are increasing scrutiny on stablecoins due to money laundering risks, particularly in cross-border transactions.
Description
Hong Kong will soon make it illegal to market unlicensed stablecoins to the public, as the city tightens controls ahead of the rollout of a long-anticipated regulatory framework . The move comes as authorities seek to cool market euphoria and protect retail investors from hype and fraud in the digital asset space. Eddie Yue, chief executive of the Hong Kong Monetary Authority (HKMA), issued a warning on Wednesday, just days before the city’s Stablecoins Ordinance comes into effect on Aug. 1. In ...
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